Swiggy gains 7% on expansion of Food on Train network; book profit or hold?

Shares of food delivery and quick commerce platform Swiggy gained over 7 per cent in Thursday's trade after the company said it had expanded its Food on Train network to 180 cities across the country.

 

The stock rose as much as 7.13 per cent to an intraday high of ₹280.05 on the NSE. At around 9:50 AM, it was trading at ₹275.35, up 5.33 per cent from its previous close. The benchmark Nifty50 was up 137 points, or 0.73 per cent, at 24,055.

Swiggy expands Food on Train network

Swiggy's Food on Train service allows passengers to order food during their train journey and have it delivered at a selected railway station en route.

 

 

The company said orders through the service increased threefold during April–June 2026 compared with the year-ago period.

 

Swiggy said multi-station journeys, where passengers ordered food at two or more stations under the same PNR, grew more than 300 per cent year-on-year. These customers spent nearly 2.2 times more on food than those ordering at a single stop. The Bhopal–Nagpur route emerged as the most popular two-stop eating trail, with more than 1,300 passengers placing orders at both stations under the same booking.

 

Commenting on the growth, Deepak Maloo, Vice-President, Food Strategy, Customer Experience and New Initiatives at Swiggy, said the Food on Train service recorded three-times year-on-year growth in orders during the quarter, with customers increasingly booking meals well in advance.

Foreign shareholding falls below 50%

In a separate exchange filing, Swiggy said its aggregate foreign shareholding declined to about 49.76 per cent as of July 6, 2026, falling below the 50 per cent mark for the first time.

 

According to the filing, aggregate foreign investment, including foreign portfolio investment (FPI), foreign direct investment (FDI), and other indirect foreign investment, stood at 49.76 per cent of the company's fully diluted paid-up equity share capital, while domestic ownership increased to 50.24 per cent.

 

Swiggy said the change does not, by itself, alter the company's ownership or control status, nor does it affect its share capital, management, business operations, voting rights, or the rights attached to its equity shares.

Should you Buy, Sell, or Hold Swiggy shares?

Analysts at JM Financial, meanwhile, remain skeptical on Swiggy and have maintained their 'Reduce' rating to the scrip. In a research report dated July 7, 2026, Swapnil Potdukhe, Atul Borse, and Avnish Sharma, analysts at JM Financial, said that they continue to ascribe zero value to Instamart, supply chain, and platform innovation segments, given the lack of visibility on a turnaround and the increasing probability of prolonged value destruction.

 

"We also exclude cash from our valuation, as continued losses will only deplete the balance of ₹15,000 crore with each passing quarter. We continue to value the FD business at 35x adjusted Ebitda and the out-of-home segment at 25x EV/adjusted Ebitda, yielding a Jun'27E target price of ₹250," wrote the analysts at JM Financial. 

Technical view

After a prolonged phase of underperformance, Swiggy's stock appears to have found support around the ₹235 level, from where it has staged some recovery. From a technical perspective, the stock, Harish Jujarey, AVP and Head of Technical Equity Research at Prithvi Finmart, said, has reclaimed its 20-day and 50-day moving averages, indicating an improvement in near-term momentum.

 

The ongoing pullback, Jujarey believes, is likely to extend towards the ₹295–300 zone, which is the previous swing low and also coincides with a downward-sloping trendline, making it a key resistance area. While the short-term outlook has improved, the broader trend remains weak. "A decisive breakout above the falling trendline will be required to confirm a positive trend reversal and open the door for further upside," said Jujarey.

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